Mixed Data Translates To A Topsy-Turvy Day For The Dollar

Fed Officials Divided on Rate Hikes

Mixed Data Translates To A Topsy-Turvy Day For The Dollar

The U.S. Dollar (USD) has had a mixed start to the week on Monday as fundamental data fuels an upside reevaluation against some of its major counterparts yet fails to impact others.

The USDJPY is currently trading at 101.63, a 0.27% rise on the day’s opening price. The rise comes as the Federal Reserve reports a capacity utilization rate at 78.8%, beating expectations at 78.6% and the previous release of 78.5%. In addition, the industrial production (MoM) figure came in well above expectations, coming in at 0.6% growth versus a forecast of 0.1% and a previous release of -0.2%. With key Japanese data scheduled for tomorrow evening, the pair may return some of its gains as the week goes on. The Japanese Ministry of Finance is scheduled to release the trade balance data, alongside its constituent imports and exports data. If they beat expectations, the USDJPY may end up giving back the majority of today’s gains.

The USDCHF is also up for the day, currently trading at a 0.09% premium to the day’s open at 0.8730. Similarly, the GBPUSD is down 0.05% at 1.6638, just shy of key long-term support.**relatedarticle**

The USD gained strength against the Loonie, as Statistics Canada reported lower than expected foreign securities purchases. The figure came out at 1.09B, versus a forecast of 3.24B and a previous release of -4.28B.

On the other side of the coin, the EURUSD is up 0.07%, currently trading at 1.3924. The rise goes against the fundamentals, with a spate of negative data coming out of the Eurozone throughout the UK morning session. Eurostat reported the consumer price index (CPI) (Mom) at 0.3%, falling short of expectations at 0.4%. The YoY equivalent also missed its target, coming out at 0.7% versus its forecast of 0.8%.

Similarly, the AUDUSD is up 0.63% at 0.9089. Traders and investors will be looking to the Reserve Bank of Australia (RBA) minutes release on Monday evening to gauge the future of the nation’s monetary policy.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com